If you've ever
tried Uber or live in a city where taxis are unreliable, you know
Travis Kalanick's team is onto something big. People are willing
to pay up to avoid being late or stranded.

But how can Uber be worth multiple billions? And how will Uber
impact more than our punctuality in the future?

Right now, Uber only lets you hail cars from your phone. It
started as a luxury black-car service in 2009, but now it offers
cheaper options, like Sedans (Uber X) and taxis. There are no
reservations. The app only accepts real-time requests.

In Kalanick's mind, Uber can offer much more than rides. The CEO
hinted at the company's potential in an interview
with Fortune's Jessi Hempel, where he called
Uber the
"cross between lifestyle and logistics."

Kalanick wants Uber to be an "instant gratification" service that
gives people what the need, when they need it, whether that's a
ride or
some other delivery.

For example, if you want to send a package to a friend across
town, you could hail an Uber driver who could pick up the package
and deliver it minutes later.

Kalanick's team has already experimented with on-demand ice cream
trucks, which deliver treats to residents who hail it on their
phones. They've also experimented with on-demand roses on
Valentine's day, helicopter rides to the Hamptons, and on-demand
barbecue in Texas. Each has been spun as a marketing promotion,
but it's also a way for Uber to test new types of deliveries and
work out the kinks.

"What we're
doing right now is we're in the experimentation phase where you
sort of find some interesting ways to do promotions like Uber ice
cream," Kalanick explained to Hempel. "It's very straightforward
for us to basically give [drivers] a phone with an app on it and
say, 'Look, when the thing is blinking, hit the screen and go to
where the map tells you to go. And you don't have to pick them up
and take them anywhere, just give them ice cream.'"

So while Uber
only currently offers rides full-time on its app, it's in the
process of figuring out logistics around the world to ultimately
power other real-time requests. Think package deliveries,
furniture, food, and more.

"Uber is building a digital mesh — a grid that goes over
the cities. Once you have that grid running, in everyone's
pockets, there is a lot of potential for what you can build as a
platform. Uber is in the empire-building phase."

That doesn't mean you'll be able to order everything in
real-time on a service like Uber.

"There are things that are not designed for Uber," Kalanick
told Hempel. He used the example of hailing a plumbing service on
Uber. Plumbers are needed so infrequently, there's no need for
them to show up in real time via Kalanick's service.

"If somebody goes ...'Travis, when are you going to do a
concierge service? Or hotel [bookings]?' I'm like, 'We're not
going to do hotels because we're not delivering a hotel building
to you.' We know what we are," he says.

Uber is not
guaranteed to win and dominate the world of logistics. There are
other real-time networks, like Seamless or PostMates, that could
inhibit Uber's expansion plans. Multiple cities have given Uber
legal trouble in an effort to protect cab companies.
Competitors like Hailo, SideCar, and Lyft have popped up
and gained traction.

With a reported $125
million in annual revenue, Uber's $3.4 billion valuation is a
stretch. But when you start to see
Uber's potential beyond cars, the number becomes easier to
grasp.

An investor
who hasn't put money into Uber doesn't think the valuation is
crazy, but he does thinks it's one Uber will have to grow
into.

"You don't
have many even market comparables," the investor explained.
"There aren't a lot of alternative transportation companies that
you could take and apply the same multiple to Uber." He noted a
10X multiple on revenue, or a $1-1.25 billion valuation, might
better suit Uber's current size. "There are so many other
categories Uber can go after though; I think that's how investors
justified the $3.4 billion valuation."

Investors are
thrilled with Uber's growth.
Revenue is up 18% month over month and Uber is profitable in
all of its earliest markets. The startup has grown from 75
employees last year to more than 300 today. It now runs in more
than 35 cities worldwide, up from 12 one year ago. Uber is also a
category leader.

Google's
involvement in Uber could also add a lot of value to Kalanick's
company. Google Maps and location-based search paired with Uber's
ability to deliver would be a powerful combination.